Anticipating, Understanding and Preparing for New Rules for a New

45 Pages·2012·0.39 MB·English

by  Gibson, Sean

Anticipating, Understanding and
Preparing for New Rules for a New
Mobile World
RAMP Advanced Commerce and Mobile Retail
Services Summit

April 4, 2012

Andrew Lorentz
James Mann
Randy Gainer
Ronnie London
Contents

Overview of mobile payments
ecosystem

Financial privacy requirements

Data security and PCI compliance

Mobile communications regulation
Overview of Mobile Payments
Ecosystem
Players in the mobile ecosystem
App Issuers Issuing
Processors
Acquiring
App Developers Banks
Processor
Chip/Handset
TSM Payment Network
Manufacturers
MNO Consumer Acquirer
Merchant
“You have banks competing with
carriers competing with Apple and
Google, and it’s pretty much a goat
rodeo until someone sorts it out.” Drew
Sievers, chief executive of mFoundry.
Goat rodeo
Major deal points…
 Who contracts with whom?
 What revenue model? Greed and fear, but
mostly fear(?)
 Who controls customer? Parallel customer
relationships?
 Who is providing services to whom (if anyone…)
 Start-up costs: who pays to motivate adoption?
NOW, NEGOTIATE when there is no common
language among participants: must translate among
technology, banking, mobile network operators, and
retailer players
Major regulatory issue (I)- who regulates?
 Existing banking regulators may predominate
(Federal Reserve, FDIC, OCC, NCUA)
 State financial services regulators (and maybe
Attorneys General)
 FCC for billing and consumer protection
 State public utility commissions(?)
 New CFPB for consumer protection, backed up
by FTC
Major regulatory issue (II) – what laws apply?
It depends…
Bank or money transmitter-issued instruments
approach ---- consumer financial services law
– Electronic Fund Transfer Act/Regulation E
– Truth in Lending Act/Equal Credit Opportunity
Act/Regulations Z and B
– State Money Services Acts
– Other laws and rules: Bank Secrecy Act, Bank Service
Company Act, payment network rules, (privacy,
security, and marketing to come)
Carrier approach --- Cramming, Truth in Billing
Financial Privacy Requirements
Financial Privacy Requirements
 The landscape:
– GLBA

– FCRA

– Other :

• State laws (e.g., SB1)

• Canadian/EU law